Top 550+ Solved Financial Management MCQ Questions Answer
Q. Which of the following is not a benefit of carrying inventories
a. Reduction in ordering cost,
b. Avoiding lost sales,
c. Reducing carrying cost,
d. Avoiding Production Shortages.
Q. Which of the following is not a standard method of inventory valuation?
a. First in First out
b. Standard Cost
c. Average Pricing
d. Realizable Value
Q. System of procuring goods when required, is known as,
a. Free on Board (FOB) (b)always Butter Control
b. ,
c. Jest in Time (JIT)
d. Economic Order Quantity.
Q. A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With betterinventory management, the inventory turnover is increased to 10. This would result in:
a. Increase in inventory by 50,000,
b. Decrease in inventory by . 50,000,
c. Decrease in cost of goods sold,
d. Increase in cost of goods sol
Q. What is Economic Order Quantity?
a. Cost of an Order
b. Cost of Stock
c. Reorder level
d. Optimum order size.
Q. The type of collateral (security) used for short-term loan is
a. Real estate,
b. Plant & Machinery,
c. Stock of good
d. Equity share capital
Q. Which of the following is a liability of a bank?
a. Treasury Bills,
b. Commercial papers,
c. Certificate of Deposits,
d. Junk Bonds.
Q. Commercial paper is a type of
a. Fixed coupon Bond
b. Unsecured short-term debt
c. Equity share capital,
d. Government Bond
Q. Which of the following is not a spontaneous source of short-term funds ?
a. Trade credit,
b. Accrued expenses,
c. Provision for dividend,
d. All of the above.
Q. Concept of Maximum Permissible Bank finance was introduced by
a. Kannan Committee
b. Chore Committee,
c. Nayak Committee,
d. Tandon Committee.
Q. In India, Commercial Papers are issued as per the guidelines issued by
a. Securities and Exchange Board of India,
b. Reserve Bank of India,
c. Forward Market Commission,
d. None of the above.
Q. Commercial paper are generally issued at a pries
a. Equal to face value,
b. More than face value,
c. Less than face value,
d. Equal to redemption value
Q. Which of the following is not applicable to commercial paper
a. Face Value
b. Issue Price
c. Coupon Rate
d. None of the above.
Q. The basic objective of Tandon Committee recommendations is that the dependence ofindustry on bank should gradually
a. Increase,
b. Remain Stable
c. Decrease
d. None of the above
Q. Cash discount terms offered by trade creditors never be accepted because
a. Benefit in very small
b. Cost is very high
c. No sense to pay earlier
d. None of the above.